Outside light is received using a light sensor, and in accordance with the outside light intensity, each of a first display mode which expresses multiple gray scales and a second display-y mode which expresses a gray scale smaller in number than that in the first display mode is switched and used. The switching is controlled by a display controller based on data of the outside light intensity. Accordingly, the visibility can be ensured in a wide range of situations, from under a fluorescent lamp in a dark place or inside, to under sunlight outside. In the second display mode, frequencies of a start pulse and a clock pulse to be inputted to a source signal line driver circuit are reduced and a driving voltage is decreased by the display controller; accordingly, a frame period can be longer than that in the first display mode and power consumption can be reduced.